As many readers will know, the US Securities and Exchange Commission passed a new “hedge fund” anti-fraud rule on July 11.  We have poked fun of it a few times – including in the most recent edition of our “Alpha Mail” email update – because of its apparent redundancy.  It seems to simply confirm that it remains illegal to break the law.

(If you’re an asset manager and the mere thought of reading another story about hedge fund regulation makes your toes curl, we recommend you forward this posting to your compliance officer.  We think it’s definitely worthwhile having someone at your organization check this out.)

Although the rule applies equally to mutual funds, private equity funds and hedge funds (any pooled investment vehicle), the media has emphasized the hedge fund angle with statements like:

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